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tv   Mad Money  CNBC  May 30, 2013 11:00pm-12:01am EDT

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you got it! you got it! yes! aflac's gonna help take care of his expenses. and us...we're gonna get him back in fighting shape. ♪ [ male announcer ] see what's happening behind the scenes at my mission is simple. to make you money. i'm here to level the playing for-field for you. i promise you to find it. "mad money" starts now. hey, i'm cramer. welcome to "mad money." welcome to cramerica. i'm trying to make you money. my job not just to entertain you but to educate you, so call me at 1-800-743-cnbc. let me tell you about the rich. it turns out f. scott fits zwrerld fitzgerald was right. they are different than you and me. that's my great gatsby conclusion, the dow is
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recovering from yesterday, s&p climbing .37%. nasdaq.69%. frankly, fits, it's an easy conclusion to reach. because two months ago we introduced the great gatsby here on "mad money" like he would be anywhere else. guess what? it's killing the s&p, killing, i'll give you an almost double return for that venerablet index, extraordinary out performance that says a tonne about this market and perhaps where it's going. first, the backtrack. we know that for all the back and forth drag about how strong ore weak the consumer is, most people in this country, they are still hurting. >> boo! >> they struggle to buy home, they don't have the credit score to get a home. they worry about jobs. we don't have big commercial real estate programs going on. small business the principle generator of new hiring,
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nowhere. these people have a hard time getting loans to start businesses because their credit ratings aren't strong enough in this world the stressed middle the payroll tax hike, it was a bone crusher for them. and while their homes may have advanced in value, it doesn't mean their mortgages are above water yet. they don't have stocks to speak of. so much for the stock wealth effect. meanwhile the government is doing nothing to take up the slack. in fact, the only thing the government at all levels seems to be good at these days is firing people. after being virtually unable fire people for years, they become seasoned practitioners at that game, better at it fighting amongst themselves, ordering and hassling us. so that's why walmart is having such a hard time. that's why target is so disappointing. that's the reason why it ain't happening for j.c. penney and sears and k-mart had much u such miserable quarters. guess who is riding on the hog? i don't mean the chinese after buying smithfield pork that
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isn't tainted or contaminated. it's the rich, just like f. scott fitzgerald and leonardo dicaprio told us. it's saver us a territory. they're the ones who are worried about the taperers, the tapers, the leamers. i keep hearing the fed may end the taper. i never hear them ending the leamer. what's to do with that? just like you might expect an ego-driven bracket, when these people aren't reaching for yield, they're reaching for luxury goods, which brings us to the great gatsby index. hardly a day goes by when we don't hear something positive about this index. let's take them down. we roll up the index, michael cor's of way too expensive things like handbags that cost you $300 even at the jer city outlet stores, my daughters force me too is trading at 58.
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same store sales is staggering. no wonder the stocks rallied up another buck 73 today after being up yesterday. cor's is not stopping there either, not with that runway. they have strong european numbers where the rich are really, really different from everybody else. people are seriously fretting over lulu lemon's yoga pants recalled when slapped the index at $68 bucks. now no one can recall the recall and the stock dump jumped ten bucks. it is going down as the corporate chieftan who refused to sell an inferior product. she will probably be able to raise prices because of her trance parent stance. when people were talking about whole foods, when it was selling at $44, that split adjusted, well, we saw the company's true color, it blew away the numbers.
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the rich seem to be spending more than ever. when the rich guess richer, they don't go to safeway or kroger, they go to whole foods. i could have switched to the extra large duncan do nut's coffee during the week. i can afford starbucks. i'm not the only one who is more willing to spend more on my coffee. starbucks ramped from 58 to 53. it included same sales store numbers. did you see the tip of the earnings yesterday, the japanese have some sort of weird buy one get one thing going on over there or something in their economy. it started with retail sales. the u.s. is always the driver t. stock of the robin's egg blue box company vaulted from 68 to 78 on a blog reported tuesday since we started this index. those sales were definitely not hurt by the payroll taxes or the gigantic tooik hike for high earners. as strong as it has been, can you believe that coach topped it rallying more than 78% t.
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company pulled out of its tailspin probably because of its moderate to expensive foot we're. i have always thought of panera bread as a bargain. that may be because i have a bit of the great gats in me. now that they have that egg mcmuffins, people will spend more, buy a drink. get the chicken added to the salad. i'll have a little more dessert. the picture size at panera has grown which allowed the stock to grow from 165 to 193. okay. not everything is roses in this index. not all the companies have benefitted from the conspicuous core larry that ben bernanke's us a territory. maybe houses made by toll brothers or folks from brunswick are worried about the fed liamering or tapering. i know the toll, the company, they have to toll the stock. well, for whom the bell toll, it's in the grips of the feds. it may be the end of the large s.
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no one at the fed is saying that. the rich don't seem to want to smell all that better either. estee lauder is only up 6% trailing the market. if you are a woman and wear anti-stink pants, you don't need to wear the esteee perfumes t. last kward quarter nordstrom's gave you is not that spectacular, which brings us to the best of the best, which i have saved for lasted. sach's. anything that has its own zip code extremely gatsby like. it's the same zip code as east egg. coincidence? yoevenlths it's up 32% since it created the index, at the same time, it's a reminder while a trickled down economics may sound great in theory, the wealth isn't trickling down fast enough to help regular people. maybe that's why we shouldn't by a frayed of the fed tapering. instead, we should accept we need to get more rich people to
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get the economy humming. well, that's something. it ain't happening. here's the bottom line. gatsby, the movie, may come and go, gatsby the index is just going higher and higher. if the rich weren't dinged during this period of much higher taxes and return on savings, perhaps we wouldn't debt dinged at all. which is why i suspect it will continue, perhaps through 2013 as they increase in value and they spend more lavishly by the day. bob in illinois. bob! >> caller: bbbb-boo-yah, jim cramer. >> stuttering at the top of the show. what more could i want? >> caller: first time caller, long time listener. my question is, where do you see chevron by year's end and how will the shareholders meeting yesterday affect the ceo of chevron? >> boy, chevron has been a horse. i don't know anyone upset with chevron, see me, i will run you over.
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it's an amazing stock it didn't go to 135. a lot of fooem people feel oil is going to give up the ghost. someone complained about kev ron? give me a break. john in california. john! >> caller: boo-yah, jim. i love you out here in california. >> same to you. >> we had it all fixed out on dole a couple weeks ago, they were selling the ship, panning out $250 million in debt. now, all of a sudden, they're not paying off their debt. they're buying three shifts. what's going on with dohle? >> it's rogue. i honestly, i mean, the stock should be much higher if they would just do what they're supposed to be doing, which is the fruit and vegetable business. all right. this company should come on air and explain itself. really. i welcome you. dole, come on air, explain yourself. let's go to peter in illinois. peter. >> hey, jim, thanks for taking my call. my question centers on lincoln electric. the stock is trading at or near a year high of 60.
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lincoln in 2011 split. i believe it was at 75. it is, therefore, had a nice run back to 60. do you see another split and what is your overall view of lincoln in the future? >> i don't know if it will split, but, boy, i'd life to have this company. they are terrific. i mean, i admit. lincoln was always the company i used to say when i was at gold man sax, this is uniquely an american company that make things, cuts things, cuts metal. people say, give me a metal-bending company, it's will be con. i don't know about the split. i do know the business is good [ music playing ] is this market putting on the ritz or is it putting on the great gatsby index? that's what we are seeing. you know what the rich are different than you and me. they buy at stores. stocks go higher. stay with cramer. coming up, next in line? insurance giant aig was left for dead, but rose from the ashes to become this market's comeback kid.
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now, cramer may have spawned the next stock to come around and start moving higher. stick around to find out who. later, spicing it up. pop eye's other than aig enterprises was heating up the street after a report of a first quarter. is there more to be savored? cramer checks out the menu with its ceo just ahead. plus, more in the tank? america's natural gas buildout has fuelled a big move for target industries. but has it just begun? tonight, cramer speaks with the ceo to hear what exports filling stations and gas-powered railroads could mean going forward. all coming up on "mad money." don't miss a second of "mad money." follow @jim cramer on twitterlet. hashtag mad tweets. send him an e-mail at "mad money"
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here's my take, profits are the mother's milk of stocks. how would you like to own the next aig? yeah, the insurance giant built umm u up by the u.s. government to the tune of 282 buck. it has been roaring since they sold off the stake in the company. the best time to buy these once troubled financial institutions? buy, buy, buy, buy, buy, is when the governments that bailed them out are ready to owe sell, sell, sell, sell -- when that happens it's a fabulous tale the troubles are over, the house is in order. it's ready to stand on its own two feet. what we have seen over and over again with these bailout names is they have been able come roaring back as more streamline, more competitive players. and now it's about to happen again. ♪ -- the royal bank of scottland, rbs, for you home gamers.
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at one point in 2007, the roim bank of scotland was the largest bank in market capitalization in the world. at that time they made a horrible decision to buy abm amro. in 28, rbs became one of the most troubled banks in the united kingdom, if not the world. it ended up getting a gigantic 45 billion pound bailout. ever since the u.k. has owned roughly 82% of the once proud royal bank of scotland. however, in the years since, the backup began to turn itself around. even as the stock became money loser. it is looking more likely when they began selling its stake, maybe 18 months at the most. the next big elections in britain are 2015 t. current government will want to be out of the banking business by then even if they have to sell at a loss.
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i think this whole process will be for you to buy royal bank t. main reason is that we seen this scenario happen many times. we have a playbook for it. listen. think about aig. even though it's an insurance company, not a bank, it's a similar story because the government owned 80% of the business, since they began selling shares in 2011, a little more than two years ago the stock has now since rallied more than 50%, double the gain you would have gotten the s&p 500 up 23% at the same peempltd aig began selling it last december. it's not just aig, though. citigroup, another lid on it. had to take a $45 billion bailout. they've paid back the government in december, 2010. while the stock got paid back not long after, ever since europe u europe started to bottom, they came back with a vengeance. stock had a 52-week high today. i believe world bank of scotland could follow the same pattern exactly as aig and city, which is why i want you to start thinking about building position in this $10 stock.
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got your attention there. we like it when banks get out of hock to their governments. in part, because more shares traded on the open market mean, i know this sounds weird, they can buy millions of shares at once, mostly because it reduces political interference t. combination of these two things tends to cues big institutional investors buying hands over fist, plus, stocks have catching up to do as the vast majority of banks are at or closing in on the 52-week highs. they have to pounce so they can tell their investors, see, we are participating in the rally. i'm not recommending rbs because it looks like the british government can start in the not too distant future. i think rbs could actually be one of the most terrific turn arounds of the era right here. even though at that moment, the moment if you go ask around, i
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know what people will say. they will say it's far from a beloved stock. it is viewed widely as a mess. so i am very contrary in this rbs call. you go bake your calls. the guys have sells on. guys hate it. this is not a story that people are all going gaga about. just the opposite. however, to me, the term here seems solid t. big part that everyone wants to invest in is the core commercial banking business. that's 44% of the assets. the royal bank of scotland is an excellent retail bank. they have five largest players, rbs control about 80% of the market. you know how much we love, love, love cramerica. it's much more concentrated than here where the top five banks are going at it because they only own 40% of the market. this is a fabulous corporate bank in the u.k. when it comes to commercial banking, rbs controls 30% of the market in britain, thanks to that old boys network over there that seems to run everything.
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you have a high quality retail commercial bank. one trading to lloyd's, another u.k. bank which has the british government as the largest holder. the reason they trade at such a huge discount is the because they have other businesses too. okay. these around that good. >> the house of pain! >> there's the markets division, 22% of the company here, rbs, used to be one of the biggest fixed income houses trading in the world, but this is not a good business to be in right now. ever since the downmarket, we want shrinkage at rbs. the worries are going to become a rear view issue as most of the work has already been done. yet, when you read the research, it's what everybody is worried about. that's wrong. then rbs has a non-core unit. it's like city holding, order
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unwind their bad assets. in twoirngs bad bank had -- in 2009, they had 260 billion pounds. that's still a lot. but by the end of the year the company should be finished structuring this ugly duckling division. that's terrific. because the servicing costs have been killing rbs. those costs are a dead weight loss. they will not be missed. plus, rbs has a couple businesses to be spun off. the company is a leading banker in ireland, where it has 15 two 20% of the market. now ireland is emerging from a period of harsh us a territory. their economy is starting to recover, led by tremendous strength in dublin. ireland is roaring back. i believe it will have the best year over year growth in all of europe. last but not least, rbs has a terrific american business. it's called citizen's bank. nearly 1,400 branches. there is no real reason necessarily for rbs to be in the u.s. i think it would make sense to
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spin it off as a separate publicly traded company. i have a soft spot for this one, because the philly, including domenic brown, play at citizen's bank park. also because this is a pristine bank that didn't blow its head off in the heyday. i think hedge funds will be bidding up. it's a huge move happening in american banks t. royal bank of scotland, it gets no respect. but the company is really turning itself around. i can see the stock going already 40% higher from here. would be the pattern as rbs continues to get its house in order and the british sells the majority stake over the next year. remember aig sold off all its shares, i think rbs can do the same thing. there is no reason to go crazy. it trades good over in europe. there is plenty of stock for sale. i am planting the seed. there is going to be a lot of people who don't yet realize this ugly duckling, will end up being a royal suave. let's go to yave in kentucky.
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>> caller: boo-yah, jim. i have one bad stock similar to banc of america during 2011 low, with a consistent dividend payout and it's thrown latin america and overseas influence cannot build a position here. >> it is not as good as bcba which is the better bank and the one i have been switching. bvba is better ran. bianca sander, there has been management stuffle. so bvba is my preferred way to play it. i got to go to joe in new jersey. joe. >> caller: jim, thank you for taking the call. watching it for a while trading in the 13% range. is it a buy? >> i always thought that dividend was if trouble.
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i have been wrong. it looks like the stock is working. i have to tell you. i like so many banks. i don't need to own, to recommend that one. i like j.p. morgan more. hey, i like quality. then your bank is quality. i meant a, jaemd jamie diamond, ceo, j.p. morgan, pretty good bank. let's go to james in florida. james. >> caller: hey, jim, this is james in sarasota, florida. long-time listener, first time caller. >> thank you, sunshine. >> caller: as you know, they had a big time rally. i own about 300 shares of j.p. morgan from my employee years in the day. with the london way of low last june, do you see any upside? >> this one has to play catchup, believe it or not, it is behind the average bank stock, which is frankly crazy. it is far, far, fa far, from your average bank. my charitable owns it. the next aig, wouldn't you love to catch it? everybody loved that one. the ugly ducking rbs may turn
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out to be an aig-style swan. no reason to pay up for this one. there is like millions of shares for sale. i am putting the seed in your head. do the work. this one is going higher. after the brake, i'm try to make you more money. coming up, spicing it up. pop eye's chicken owner was heating up the street this morning after a reporting of fresh quarter. is there more to be savored as store option? cramer checks out the menu with its ceo just ahead. later, more in the tank? america's natural gas buildout has fueled a big move for chart industries. but has it just begun? tonight, cramer speaks with the ceo to hear what exports, film, stations and gas-powered railroads could mean going forward. plus, buffet watch. the world's most famous investor just made another big buy. but before you ride the oracle of omaha's coat tail, find out
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what cramer thinks ought latest spending spree, all coming up on "mad money."
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when it comes to the restaurant business, all you need is a makeover. take aig enterprises, coming behind pop eye's, the no. 2 chicken chain behind kfc with 220,000 locations at the end of the first quarter. 80% of which in the united
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states. last year, afc took a paige from the real housewives of beverly hills and decided its stores needed a facelift t. company remade 35% at domestic low, transforming them into pop eye's and kitchens. they are seeing four percentage points higher. is gigantic. it's a bing bump. by the end of the year, they expect to remodel 60%. lots of upside left. given the extensive remodelling and rebranding, it is no surprise the results were terrific. even though the company's earnings were in line the revenues rides 14.4% year over year, same store sales came in 4.5%. you got to look at a two-year basis. more important, afc raised its guide, now, afc is giving you a 54% gain since i got behind it big time last august. up another 16% since the ceo spoke most recently. let's check in with the ceo.
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find out more about the quarter and where her company is headed. cheryl, welcome back to mad money. >> good to see you. this is exciting time for you guys? >> yes, it is. i'm trying to figure out, what is going to be the driver next? is it more drive-throughs, the possibility of the more remodellings or is it the breakfast test? >> well, you know, i think it's the fundamentals. so the brand will keep driving with innovation t. operations will keep getting better for our guests. we will keep building more drive-through locations and this great new image you referenced is really making the place, makes the food taste best e better. >> i want my breakfast. >> breakfast, not yet, jim. the use of around the clock, that put mcdonald's in the stratosphere when they started doing breakfast in there i understand the power of breakfast. one day there will be breakfast. today we are working on our
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lunch and boneless and seafood products. when we fully exploit that opportunity, we'll move to the next. >> a lot of the promotions have lost the fizz, but now you did butterfly shrimp tackle box. cajun surf and chicken. >> we want to keep the fizz in our product innovation. that's what keeps the customer excited of coming back to pop eyes. expect more of the same. >> i was looking at the map of where you are. there are many states that have only one to nine. there are still a lot that have 10 to 14. you could conceivably a add 1,000 stores and not reach saturation. >> absolutely. i talked the united states could double in size over time him there are mini markets, where we had an exciting response. reweently opened restaurants in minneapolis nor the first time. very exciting consumer response. there are many places like that
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to come. >> what happens in a remodelling, what is the difference? >> it's like remodelling your house. it's more fun to have people over. the same is true in a restaurant. you make the environment fresh the food tastes better, the hospitality is better. >> how about suburban vs. urban? >> suburban very urban for pop eyes? >> yeah. >> hour stores are working fabulously. they are opening a million, six annualized. >> it's high. if you want to get a franchise, that's pretty good. mostly a sample a big number. >> it creates good unit economics for the owners of the restaurant. >> for the first time, people were worried about chicken cost, yet, chicken is going your way now. >> we expect good things for chicken. first quarter commodities were up 2% for us. the balance of the year looks good, last year we remember the prices spiked for chicken. we expect a much better season this year. we expect the season to be flat. >> i was trying to understand the pattern with opening and close in this korean market when you use the term "term." what happened in korea, did people not open in the right
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spots or the stores weren't that nice is? >> what i talked about, we had closes international. eight in korea. in korea, we have 100 restaurants. they have short-term leases with a subfranchisee that reports to a master franchisee. so there is more turnover in the leases and the owners. that's what i meant a by churn. >> oh. i couldn't understand if they went out of business. it's turnover. >> it's turnover of the owners and the restaurant sites. >> since i seen you last, obviously, you almost had a very hard time, kfc in china because of issues involving bad publicity. people recognized from the smithfield move by the chinese yesterday we have the best food. i would think that yum the kfc is vulnerable here for any surge by you guys? >> well, we intend to be a major market share player in the u.s. and around the globe and so there is no question that we have our sights on rapid market share growth, both u.s. and around the globe. >> now, where are the countries
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that are shocking to you that the -- honestly, i no eto me, it's a uniquely american idea when you have a butterfly shrimp special or the cajun surf and turf. where is this playing that you didn't think it would? >> well, the cool thing is this chicken and sze seafood are the chicken's protein. rice is the world's starch. this is what we do for a living. red beans and rice. it plays around the globe. >> this is a great vegetarian dish for a lot. >> a fabulous vegetable and rice dish. absolutely fabulous. around the world, it is vegetarian. it has no pork fat or anything in it, in the international market. it's a great product. our food travels very well. cutter is a great examining of an interesting market, they are building a country. >> qatr, they are building soccer games in 2020. universities, hospitals, businesses, they are building pop eyes like crazy.
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>> lastly, you were a pioneer in the social media, working for you, facebook working for you? what is working for you? >> the social media is a great brand for a cult like pop eyes. people like to talk about it. if they have a problem, they say, give them a try, social media is where your brand lives today. you got to take it seriously and be there with your innovation and time sensitive messages. >> it's a remarkable story. most of the restaurant stocks do i, i follow are played out. they are already everywhere. all they can do is raise price. have you kept price the same. you can build a lot. >> we have a lot of growth opportunity. >> that's the ceo of afc enterprises. you can see why i'm behind this all the way. i think it is the cheapest restaurant growth story out there ""mad money"" is back after the break.
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last week, i asked you to send us picture of how your family watches "mad money" in preparation for what i know will be a fabulous "mad money." it's a fabulous affairs show. take a look at this one. this was sent to us by angenet
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and john. we want more picks on how your family watches "mad money" together. tweet them @jim cramer or message ut on the "mad money" facebook page. now it is time! it's time for the lightning round on cramer's "mad money." what's that about? well, it's about rapid fire calls. one after the other. >> buy, buy, buy! >> sell, sell, sell! we play this sound -- [ buzzer ] and then the lightning round is over. are you ready skee-daddy? let's start with elizabeth in florida. >> caller: hi, cramer. i'm concerned about my position in mcdonald's. the stock price is heading downward towards a 200 a day moving average. global sales have dropped. franchisees are disgruntled due to corporate dollar coupons and pressure is mounting from its competitorsment cramer is it d-day for mickey d's? >> i was at mcdonald's the other day. it looks like it does always, i
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was talking to the manager, i said, what do you think in '97? she goes, wait, wait, so we're waiting. i think it's still to early to buy. let's go to sam in california. >> caller: boo-yah, jim, how is it going? >> not bad, how about you? >> caller: not too bad. what is your take on quintiles? >> i like quintiles. i got to tell you, i said, buy the stock. it's a good one. jane in south carolina. >> caller: yes. >> how are you? >> caller: i'm fine, thank you. how are you? >> real good, thank you. >> caller: good, thank you for all you do. >> ah, are you quite welcome. go ahead. >> caller: mandover. >> mandover i should have gone back to it is on fire. ira elly like the stock. hey, let's go to jim in ohio.
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jim. >> caller: boo-yah, mr. cramer. you are a great american. i like to wish you god's speed. >> thank you. >> caller: my stock is milk and crown entertainment. i bought it at 24 and i'm just curious what your opinion is of it. >> well, i still like to tell you i like las vegas sands more than m-pal. you got a stock that's kind of plateauing there. i think las vegas sands has more growth. i also like mgm. i saw the new yorker the other day. let's go to mark in south dakota. mark! >> caller: hey, boo-yah, jim. my stock is santaris. >> the products are good t. stock goes higher. buy, buy, buy. ladies and gentlemen, is the conclusion of the lightning round! >> okay.
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>> okay. i have been talking about n anc.
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okay. i have been talking about natural gas here on "mad money" for years now. all the pieces finally seem to be falling into place. as dan d'amico, the chairman, told us last night. it's a game changer for the u.s. economy. the main thing i keep coming back of harnessing this cleaner fuel, is it's a money-maker for you. you have to be careful how you play. case in point, chart industries, gtls, a stock that's rallied 155% since i first recommended it in february, the chart makes cryogenic equipment for natural liquified fwas that only can be transported oversea, the engine thanks for heavy duty trucks. in short, whether we use that gas as a fuel for surface vehicles or decide to export it to other countries where the surprise much higher, either way chart wins.
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the chinese is going gaga. the company is winning big orders over there. said the company has an industrial gas biz with a biomed cal division. together these two segments make up around 45% of the sales, of late, these divisions are starting to hum, double digit style. chart industry reported while they missed wall street estimate, some quarters got pushed out the underline trends were more than solid. since then the stock added a 6620 points in barely more than a month. more terminals have been approved here in america. does chart have room to run? let's give it a better look with mr. thomas the chairman of chart industries. welcome. >> great to see you. >> now, we have been going on the debate back and forth. but your company is in a unique position.
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if we export it, you make money. if we keep it here, you make money. >> that's right. not only do we participate in the lick which fire liquid iers. >> chosen is a bigger market for you than the united states for this stuff. >> it is for lmg. it's the fastest growing market we have. we think it's also a tremendous object lesson in how the u.s. market and europe will go. three years ago, our sales are about, are smaller than they are for lng in china and the u.s. we have seen a tremendous ramp. our business has been growing at 75 to 100% a year. we expect to see that continue growing in this space in china. we think that come three, four years from now that we'll have that same kinds of growth pattern in the u.s. for lng equipment. >> how many of all these plants, there are 23 property five and 18 in the united states, how many get built?
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>> not that many. >> i didn't think so. >> i think that generally with large capital projects like that, you will have at least twice as many or three times as many announced as with actually get built. because there is a certain amount of positioning. if two or three plants or five plants get committed, the others no longer look xim economically feasible. >> right. >> that's the position we are in now. i believe that with natural gas supplies and pricing and demand for natural gas around the world, that you could support seven or eight plants, perhaps even ten plants over a ten-year time period. but we've also got the federal government issuing licenses and deciding. so it's a political issue as to how much goose we export vs. how much do we consume domestically. i think on all of that, i'd bet on over the next five years, perhaps five or six plants being built. >> okay. that's not going to send 20% of
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the natural gas overseas with i some people are worried about. >> no, no, it won't. it's a reasonable bump. you but it's no more than 10, 15 percent of what we expect the output of natural gas to be in the u.s. in the next five years. >> simple. am i spending, i know i interviewed you many times. sometimes i feel i'm slighting the biomed and cryomed parts of your business. it's a big part. it's very strong. what's driving that? >> well, again, people are living longer and you as the global gdp goes up, mohr people get into that middle class income range around the world. they're willing to spend more on health care and a significantly higher percentage of their income. you have seen what it's like in the u.s. and europe. as china comes up, above, particularly in the coastal cities above that 20,000 dollar per year gdp per head, their people are also saying, look, i want to live longer, i'm willing to put more money into health care some we're benefitting from that. it means more medical research for our cryogenic, our
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biological storage business. business is doing very well t. ris practice tore therapy business, where we've made a couple acquisitions, we hit a rough patch with a downturn in the u.s. market and the european market, but it's coming back. we think the latter part of this year, going into '14, it will be a lot stronger. in the meantime, we're working on the blocking and tackling to improve our margin, improve our position. we feel very confident that, globally, we have the strongest position in those markets. we'll be winners. >> sarnlgs last question, within i look at your business, you have rail lines, you have trucks, the terminals that you have to build, do you have enough people to do all of your business? >> we are growing. our business in china, as an example, has grown in the last two years by more than 500 people. we've added more than a thousand people world wide in the last 18 months. we expect to continue growing. we're looking at, we're in the process of making several large
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capacity additions and we're also looking at some significant adders to our capacity. it is tough to call, based on timing. >> right. >> because i don't want to have too many empty factors waiting for business to come too soon. but then again, it's important, we are prepared because our customers are very lead time dependent and high service level oriented. so when they're ready to buy, we have to be ready to sell and provide. >> and you really, it's a challenging balance. >> but our people get it right. >> you are the only game in town, which is one of the reasons this stock is in town. listen, this is a high growth company that is doing so many great things in so many great markets, including natural gas. "mad money" is back after the break.
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>> i know, i shouldn't be shocked warren buffet has done something brilliant again, the buying of the largest power company nv is staggering. he doesn't care about an increase that knocks down the utilities. he knows in the end, companies are companies, not stocks. the rotational weakness is an opportunity not a hazard. stock has dropped 10% because it fell victim of being bumped from the wall street fashion show. it was too juicy for buffet to ignore.
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second, nevada used to be the second greatest state of the union. the prices for those homes in nevada which has been in the dumpster are now soaring t. power in the state never dropped. now the gamblers and home buyers are flocking back to nevada, i expect it to soar now they have spent the money to build new plants and gotten the ratings it needs. buffet's timing in the nevada is impeccable. third, remember that california is always short of power and it's incredibly difficult to put up power plants. nevada is next to california. the location of the plants allows the company real power over if state with the highest electricity prices in the nation t. big expansion of natural gas power plants is paid for. the real power fees are gradient. fourth, it has a triple b meannous balance sheet. i fwaet rate can be cut in half. 95th, nv energy, buffet favors renew also by 2025.
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berkshire can accelerate that dramatically, given that nevada is the state for solar and wind farm development, sunny, winny, what's not to like? this purchase is one more demonstration oracle knows the best way to make money is to bet against wall street and the companies themselves. the status made no sense given the fact that not all utilities are the same. they all trade in lockstep because of wall street's all utility stocks are created equally. they will get hurt by the rise if rates. it's not true. buffet knows it. he is pouncing when others ofretting. congratulations once again to the best investor lot. nice pie. stick with cramer.
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welcome to brooke len, the home of what might be the longest poenz scheme ever. tonight meet the man that swindments from his own neighborhood. he takes millions of dollars from them. it's an all new "american greed." the world bank of scotland rbs please don't pay up. there is millions of shares for sale. put the idea in your head afc,
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pop eyes i'd like it. chart industry, the stock is a horse. i like to say there is always a bull market somewhere and i promise to try to fine it just for you right here on "mad money." i'm jim cramer. i will see you tomorrow! threat anymore. >> eight years in prison is a long time. i didn't think that we'd hear from him again. >> narrator: but this is no ordinary con man. this prisoner is prospering with a new scheme. >> from inside the prison walls, he was able to convince people he was a millionaire commodities trader and have them invest their money with a man in jail. >> narrator: and before anyone is onto his scam, griggs gets released... >> perry had left in a hurry. so this became an active fugitive investigation. >> narrator: ...leaving his victims with nothing. >> our property is taken illegally.


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